Several significant financial, environmental and social benefits are associated with improving the efficiency of water utilities. Water utility efficiency covers a broad range of technical, managerial, financial and governance issues that help a utility to deliver effective services. Further, with many parts of the world expected to face severe water scarcity because of climate change, water efficiency of utilities becomes even more crucial. The main objective of this matrix is to help governments and utility managers assess why some utilities function well and can be considered efficient while others struggle to provide adequate service.